When the Premier opened this Legislature, he introduced the concept iKapa elihlumayo - the growing Cape, die Kaap wat groei. He identified that: "Hope, Delivery and Dignity" will be the defining objective for our government for the next decade.

In the African mythology of elihlumayo, the growth refers to that of the emerging, new, succulent, sweet grass that grows to sustain all following the burning of the old grass.

Indeed that is what we envisage as we set to write another chapter in the evolution of iKapa elihlumayo as the lodestar of our aspirations and the focus of our hope for the next decade.

iKapa elihlumayo is fully consistent with the vision of the President, Thabo Mbeki when he declared in the State of the Nation address of 14 February 2003 that " ?.government must act to ensure that we reduce the number of people dependent on social welfare, increasing the numbers that rely for their livelihood on normal participation in the economy".

Normal participation in the economy has to be an absolute objective and the measure of whether the promise of iKapa elihlumayo is being fulfilled: are the young sweet grasses abundant for more people?

But the sweet, young grass will not emerge if it remains strangled under the old grass, and so the theme of our budget 2002 was "Making the Break". Today we recast the metaphor in terms of the mythology of elihlumayo and declare that we have started to make the break by burning the old grass in ways which are directed and controlled.

We made a break from the perception of the Western Cape government standing aloof from the poverty of its people, uncaring in its pursuit of a paradise for the rich and oblivious to the deepening racial polarization among our communities.

We burnt the old grass in an administration which some sought to make the abode of reaction thereby curbing the creativity of our administrators, and we created growth space foradministrators who embrace the future creatively and innovatively in the spirit of Batho Pele - of People First, Mense Eerste, - and revelling in the fact that they are more representative of the people they serve.

We made the break from Departments which were fewer in number, but scattered in focus, diffuse in accountability and isolated in functional silos. The new grass that must take its place promises to yield departments integrated by the vision of iKapa elihlumayo, driven by mutual accountability and focused on their specific roles and responsibilities within a bigger picture.

We are burning the old grass in departments where it represents the unsustainable face of a health system that glories in its past, but is afraid of its future; of an education system that clings tenaciously to matric results as a single indicator of success, but stands before its greatest test, the test of relevance in meeting the human capital requirements of our skewed economy; and in social service where we rightfully feel pride in the efficiency of our delivery, but which carries thepotential to nurture dependence and delay self-reliance.

In all of these cases, and in others, Madam Speaker, this government has been unafraid to burn the old grass, in controlled and purposeful ways.

There is still some old grass to burn:

• We need immediately to resolve and finalize the future direction of IT and the employment impasse in the province within the framework set by Minister Frasier-Moleketi. This will create growth space for the exciting venture of consolidating egovernment and IT into one powerful ICT capacity for our Province in 2004/05.
• Internal audit will shift from PAWC to the provincial treasury later this year, as part of a process to improve our province's overall financial management performance. Treasury in turn, will make the necessary provision for the further full expansion of internal audit to Education, Health and Social Services, most likely through initial outsourcing.
• The restructuring blueprint contained in Healthcare 2010 will be considered by Cabinet towards the end of March this year. The budget submitted today by and large reflects the status quo, but the adjustments estimate to be submitted later this year to this House together with next year's budget, will fully incorporate the proposed and anticipated shifts expected in Health.
• The adoption of supply chain management principles, developed in concert with National Treasury, will be introduced towards the latter half of this year, giving further impetus to preferential procurement and black economic empowerment. This would require legislation to phase out the current Tender Board, which in the meantime, under the competent stewardship of Mr Leslie Africa, still has to oversee both the preparation and implementation phase of this advanced asset management scheme.
• The provincial treasury will complete its own restructuring before the June 2003 deadline as required by the PSCBC resolution 7 of 2002, so that Treasury can fulfill the agile role it has to play in the context of iKapa elihlumayo.

All of these changes by the ANC-NNP co-operation Government have already created room for the realization of the objectives of the 2003 budget. The emerging new succulent grasses are beginning to give sustenance to many more, despite the fact that what we ultimately want to achieve cannot be achieved in the space of one year, not even a decade. Challenges such as those in education require a full generation to mature. This is the nature of change in a society so fundamentally unequal and divided as ours. In this context our achievements are all the more meaningful:

Extension of the safety net

We promised last year that we would extend the safety net and we did. The number of beneficiaries increased from around 410 000 in April to a projected number of 504 000 by end of March this year. At the same time expenditure increased from R1,9 billion from the 2001/02 financial year to R2,5 billion for this year. By all accounts a remarkable performance exceeding all targets initially established for the Western Cape by the national Social Development department in 2001. We all know that poverty, particularly with the sharp rise in food prices lastyear, would have had a devastating effect were it not for the intervention of government.

Investing in our children

Investing in our children was our second objective, with the aim of securing a relevant future for learners. Much analysis has taken place, particularly at the national sphere, beginning to indicate the steps required. The Premier has already alluded to the performance of our Education department in his opening address, which has performed better year on year with a matriculation pass rate of 86.5% and exemption rate of 26.5% in 2002 relative to 82.7% and 25% respectively in 2001.Importantly, the building blocks for the Mathematics, Science & Technology Academy is in place, and the Premier has indicated the seriousness of our intentions by launching this Academy this week.

Black economic empowerment

We said that we would promote black economic empowerment using the Preferential Procurement Policy as a tool to do so. Results to date indicate that about R100 million more will have been spent this year on furthering economic empowerment, which represents 38% of all contracts awarded up to 31 December 2002.

The Housing Backlog

Our greater investment in Housing - from R382 million to R460 million in 2002 - has been vindicated by the fact that they have already spent close to 80% of their budget with 1 month still remaining.

Broadening Culture & Sport

Again we have seen previously ignored cultures - the Township Choirs, the Malay Choirs, the Minstrels and the Christmas Choirs - taking their rightful place next to the Philharmonic Orchestra and in Sport we have seen a return to school sport. This truly represents a return to our grassroots involvement.

The Economy

Even in the economy the early signs are that we are tasting the sweet grasses as our agricultural products become more competitive, and the early completion of the Cape Town International Convention Centre is already delivering on its promise of bringing a new category of tourist to our shores.

Our partnership with labour has the potential to turn around the clothing and textile industry; the excitement which greeted government's support for a film studio can turn potential into reality for the film industry, and our MOU with Eskom positions our Province to be the service hub for the burgeoning Oil and Gas industry off and on Africa's West Coast.

These, Madam Speaker, are the early fruits of iKapa elihlumayo.

In his statement on 8 January 2003, President Thabo Mbeki called on South Africans to push back the frontiers of poverty. He said: "We must use the state budget to improve the quality of life of especially the poor, while contributing to the expansion of the economy".

IKapa elihlumayo is precisely that: an endeavour to use the province's budget to mobilize all the resources of government in the fight against poverty, the fight to improve the living conditions of our people, the fight for the expansion of the economy.

This task is urgent, because every delay means that we have to act on a challenge that is growing inexorably. Our challenges are numerous, and although one can be distracted by statistics, they do however, constitute the reality of the challenge this Province has to face:

• 26% of the economically active population are unemployed;
• only 18% of our population over the age of 20 have at least passed grade 12 (matric);
• only 10% of the over 20's have a higher qualification;
• over 21% of this population either have no primary education or have not completed it.

These statistics get a new meaning if weighed against the growth sectors over the period 1995 to 2001. The greatest contributor to Provincial GDP, by over 60%, was the Tertiary Sector (mainly financial services, business processing, and real estate). This tells us that most of the value-added growth was in the high skills sector, although we are mindful that employment generation was most pronounced in the commerce, catering and accommodation subsector.

The primary and secondary sectors of our economy were both net shedders of jobs - particularly in manufacturing, mining and construction - while agriculture, fishing and energy were small, net gainers of employment.

If we add to this the number of those dependent on Social Security, the housing backlog of 320 000 units, the 9% HIV/Aids anti-natal prevalence rate and the 38 000 new TB cases for 2002, then we can see that this is a reality in need of an urgent turnaround strategy.

IKapa elihlumayo must therefore succeed as an enabling strategy. We are assisted in this by the broad framework that Minister Manuel has given us via the national budget.

Approach and Objectives

IKapa elihlumayo as a nascent Growth and Development Strategy for the Western Cape pursues systematically the reduction of unemployment and income disparities in the Western Cape through enhanced economic activity. It therefore has the dual imperative of growing the economy as well as increasing employment and participation in the economy.

Economic empowerment of blacks, women and the disabled is a key component of the broadening of participation in the economy. Current provincial empowerment initiatives include preferential procurement in its tender processes as well as its flagship infrastructure projects. Such projects could also dovetail with projects funded by national initiatives such as the R10 billion committed to Black Economic Empowerment over the next five years, and the endeavour to develop the SMME capacity of our economy.

The elihlumayo strategy proposes to use the provincial budget as a whole as well as a series of strategic partnerships to stimulate the economy and to open it up to wider participation. The crowding in of private and foreign investment as well as proper synergy with other delivery partners such as local and national government, provincial public entities and SOE's will therefore be of critical importance to the success of this endeavour.

The Role of the Public Sector

We are aware of the fact that it is primarily the role of the private sector to grow the economy, but given the enormity of the challenge confronting us, the public sector led by the Western Cape government has an indisputable responsibility not only to be active in the economy, but to lead and drive such a process that leads to us achieving the objectives of iKapa elihlumayo.

If we are going to be successful, government has to achieve synergy within and amongst its constituent members, and do so in a manner that crowds in private sector investment. So apart from leading, it also has to put together the environment conducive to private sector investment, as the quantum of resources required are substantial.

The first initiative of the Western Cape government is, therefore, that it invests its limited resources in selected, targeted and viable physical infrastructure, and in the process creates sufficient confidence that attracts investment by the private sector and other spheres and agencies of government.

The cumulative effort has to be to unlock the potential of identified growth sectors and in both the process and the outcome of developing the necessary infrastructure, we generate employment and improve per capita income.

The second initiative of government is to re-orient the rationality and functioning of government itself. Government departments must realize a unified (rather than a sectional) set of objectives, which must, in turn, create pressure for integrated service delivery that respond to real societal needs in a concerted and consistent manner. IKapa elihlumayo demands not only efficient and caring service delivery, but service delivery that supports growth and employment and combats poverty and dependence.

Similarly the success or failure of iKapa elihlumayo will rest on a research programme coordinated by Provincial Treasury to ensure that reliable data become good information and this, in turn, becomes sound economic analysis and intelligence to guide our decision-making, and create indicators of success of failure against which we monitor and evaluate our performance.

Local Government

The vision espoused by the President and Minister Manuel and the strategy emerging provincially and carried in the concept iKapa elihlumayo, require expression at the level of local government.

All municipalities in the province have been able to deliver integrated development plans (IDP's) in terms of the Systems Act. Although the IDP process is building capacity to establish developmental local government and to strengthen local democracy, the quality of IDP's vary and much closer alignment between provincial strategic plans and IDP's is required. Furthermore IDP's need ever more strongly to be underpinned by Local Economic Development Plans if our vision of transforming dormitory towns into vibrant and functional communities is to be achieved. This will be a focus area of our Local government department in 2003/04.

It is going to be absolutely crucial that the nodes identified by the President for Urban Renewal (Mitchells Plain and Khayelitsha) and for Integrated Rural Development (Central Karoo) be the immediate canvas on which we attempt to realise some early successes for the goals of iKapa elihlumayo, most notably through integrated planning and intergovernmental implementation. The urban renewal programme in Khayelitsha and Mitchell's Plain, has had a slow start due toinhibiting circumstances. Lack of government will, local political instability, and residual effects of Group Areas have impacted negatively on institutional and project management arrangements.

Priority projects that have been identified and funded up to now mainly focus on physical infrastructure and there is a dire need to find a balance between social and economic development.

Encouraging is the latest vigorous involvement by all three spheres of government to re-direct and stimulate the programme and to enhance the involvement of the nodal communities. These events and initiatives will lead the way towards better performance with the implementation of the programme in the year ahead.

The Integrated Sustainable Rural Development Programme (ISRDP), which focuses on the Central Karoo, has been lauded as the best performing node in the country, albeit in relative terms. Local government is leading an initiative to promote sustainable economic and social development by initiating projects focused on training and skills development as well as to identify and implement more projects with direct economic and social benefits.

Drawing in our Partners

The centrality of government to the strategy of iKapa elihlumayo merely serves as a magnet to draw in our social partners.

The private sector must see iKapa elihlumayo as an opportunity to ensure profits for generations to come, but for this to be realized it has to invest in the country's future and its human potential. This Western Cape Government is a willing partner to realize the spirit of "corporate citizenship" espoused by Bottomline, the publication of the National Business Initiative.

We similarly reach out to Labour in recognition of a common challenge, i.e. both the changing nature of employment and the debilitating effect of the skills gap. IKapa elihlumayo must respond to both these challenges.

The development and refinement of the iKapa elihlumayo strategy must include extensive consultation with a broad range of provincial stakeholders. The support of labour, the private sector, local government and other key actors is central to the success of the entire strategy.

The consultation and research processes will culminate in a Provincial Growth and Development Summit that will take place in August and where the elihlumayo strategy will reach further maturity.

Other milestones in the development of the strategy include the Black Economic Empowerment Summit in April, the Construction Summit in May and the constitution of an Advisory Council of some of the movers and shakers in the economy of the Western Cape, all meant to assist government in the development of the elihlumayo strategy. More details will be announced later.

What all of this says is that if we are to narrow the wealth gap, skills and education will be the major enablers. However, education and skills development as the builder of human capital is a necessary but not sufficient condition for growth and development. What remains to be done is exemplary integrated governance and service delivery, in synergy, and supporting Ikapa elihlumayo. Strategic interventions, excellent data analysis, concerted action and very shrewd investment by government in partnership with the private sector will be the premium if we are to deliver on our equity outcomes.

This, in a nutshell, is the framework of our strategy for the future. We are in the process of putting together the required teams, the necessary consultations, and the processes towards adoption at the Growth & Development Summit for the Province in August 2003. Meanwhile the work will be driven by Treasury and selected economists, demographers and sociologists from the three universities supported by other specialists and departments as deemed appropriate. The names of those involved will be made known later.

The balance of the work will be within departments and municipalities with coordination via the established structures. Here the role of the Premier and the Director-general will be important in pulling all of them together, and focusing them on the tasks at hand.

Expenditure

Budgeting for iKapa elihlumayo

Following our restructuring in 2002, the Provincial Government now has 13 departments. All 13 are required to play their role to realise the objectives of iKapa elihlumayo. All 13 departments have 3 main goals they must achieve over the MTEF:

Firstly, each one must embrace in sprit and in letter the absolute requirement of fiscal discipline. As you will know from experience, and as illustrated by the figures, we are running a very tight budget this year, and any possible overspending will be devastating to the long-term goals we are pursuing.

Secondly, each department must seek to restructure its services to the public, making them more caring, efficient and effective. It is unfortunate, but not impossible, that the restructuring of our service platform must happen from basically the same financial base, therefore forcing each department to seek greater value for money. Absolute goal-directedness in spending is a key component of fiscal discipline.

Thirdly, iKapa elihlumayo is an attempt to move the whole of government away from being inward looking, input-oriented and distant from people and their daily lives. IKapa elihlumayo must let us focus on the outcomes we are capable of generating, and the impact thereof on the socio-economic conditions of communities.

In the pursuit of these 3 goals, all 13 departments will be united by their common commitment to iKapa elihlumayo, but be tasked individually for their domain of work. IKapa elihlumayo draws on the 5 pillars espoused by the Premier, and groups departments by virtue of their ability to play various roles.

These are the Governance and Administration cluster departments and they represent the foundation on which the entire government stands. The Provincial Administration, Treasury and Local Government departments are the key to our achieving integrated government, and their success is measured by how they enable other departments, synergise policy and strategy, and maximise and pool resources for a greater impact.

Provincial Administration: Western Cape

This area of responsibility is that of the Premier and the Director-general. They have begun to streamline their operations by, firstly, shifting the responsibility for end-user IT equipment and responsibilities to departments and most notably Khanya and HIS to Education and Health respectively from 1 April 2003, thereby rectifying the problems experienced with accountability over, and management of IT assets in use by departments.

To be able to accomplish the latter R101,7 million, R76,9 million and R74,6 million are shifted to departments over the MTEF, with Health (R79 million) and Education (R120 million) being the greatest beneficiaries.

I have already spoken about the necessity to urgently rectify the remaining contractual problems of IT staff, and this will enjoy priority so that this Provincial Government can underpin iKapa elihlumayo with high quality delivery of e-government and an enabling environment for ICT.

The Premier has spoken of our human resources "which must grow and develop if they are to keep pace with our needs". This vision needs to be underpinned by a human resource strategy for our most important assets - our provincial human resources - so that they become effective generals and foot soldiers in our fight against poverty and for growth and development.

Treasury

What we expect from Treasury would be to give conceptual direction to iKapa elihlumayo and ensure the apportionment and utilisation of financial resources that will be responsive to economic, human resource and infrastructure imperatives.

In fact that is exactly what I'm trying to achieve with this budget. But that is not enough. We will have to intensify our post-budget interaction with all role players to monitor, assess, co-ordinate and assist with appropriately targeted resource application so that we can achieve success in devising and delivering a sustainable economic empowerment delivery programme.

R77,7 million is being earmarked in Treasury for iKapa elihlumayo in this year of which R32,5 million is for human resource development in the community. R64,1 million next year and R415,6 million in year 3 has been provided for iKapa elihlumayo to kick start provincial growth and development over the MTEF. Our budget therefore grows commensurate with our growing understanding of the actual actions required by iKapa elihlumayo and our spending ability.

I'm also asking the House, for the first time ever, to vote on R26,6 million in 2003/04 for unforeseeable and unavoidable expenditure, the only provision we have been able to make for such occurrences. Anything falling outside the definition or exhausting this provision will have to be funded by internal reprioritisation. On the other hand, should the money not be used, it will be rolled forward into 2004/05.

Integrated, Co-operative Governance

The relationship between local and provincial government has changed with municipalities enjoying increasing, direct transfers from the national fiscus. This is complemented by the new positive political climate that exists between the two spheres of government in the Western Cape.

The path, therefore, has been cleared for the emergence of true integrated, co-operative governance in the Province, and our department of Local government has to play a critical role in this regard. If successful, the possibilities are enormous for pooling resources to tackle mutual challenges like the housing backlog, poverty and the implementation of iKapa elihlumayo. Towards these ends, a number of initiatives are afoot.

Early engagements with municipalities have begun on their integrated development plans and the final division of responsibilities between the provincial and local government sphere to develop a perspective on the transfer of powers and functions between the provincial and local spheres of governments. This has taken longer than anticipated, with Local government consulting municipalities to obtain their agreement on a memorandum of understanding. This has met with resistance, but it is of absolute importance if we are to maintain fiscal and service delivery stability and consequently to secure the commitment of municipalities to continue tofund contested services at current and projected levels. Achieving a political mandate will facilitate the completion of the remaining technical work.

Based on these processes a draft position paper and framework should be available by the end of March 2003 that will be used for consultations with municipalities and accounting officers to finalise the framework by June 2003. This will be supported by the National Department of Provincial and Local government's guiding framework for the assignment of powers and functions to the local sphere of government.

National Governments policy decisions for the implementation of the District Health System (DHS) comes in the context of the changing role of municipalities. Municipal health services, now defined as environmental health services, will become the responsibility of metro and district municipalities, in practice from 1 July 2004.

This provides further urgency to finding financing and accountability solutions. The national view is that between now and then agreement should be reached on functional integration between municipal and provincial health services, followed by service level agreements to ensure the retention of current municipal contributions to health services and that access and quality of health services are not compromised by retaining current funding levels.

As we build a sustainable and prosperous future, we need to keep in place those programmes of government which provide a safety net for those who are vulnerable by virtue of age, disability, disease, ill health, homelessness, etc. This safety net utilizes the bulk of government's resources and the departments providing it themselves understand the need for iKapa elihlumayo to succeed in breaking the cycle of poverty.

Healthcare 2010

The ability of this Province to provide quality healthcare for all its people within a primary health paradigm, underpinned by a focused specialist capacity, and managed for efficiency is central to any Growth and Development we may desire. Similarly if we do not meet the challenge of HIV/Aids and TB in this Province, then iKapa elihlumayo will be undermined because these diseases affect the most productive amongst us.

Healthcare 2010 is a key initiative for the public health care sector in the Western Cape both to ensure quality of care and budgetary stability within the province. The initiative must bring to a conclusion the many previous attempts since 1994 to restructure the State health services in this province.

I am informed that the consultation process, which was concluded on 28 February 2003, has involved a wide range of stakeholders and that these inputs have added considerable value to the proposals for restructuring of health services. Key to the Healthcare 2010 proposal is the shape of health services and the shift of patient contacts to the most appropriate levels of care. Many challenges must be addressed including the development of home and community-based care, together with the building of capacity in regional and district hospitals and the rationalization of highly specialized tertiary health care services. To achieve this it will be necessary to move rapidly to implementation once the provincial Cabinet has approved Healthcare 2010.

A key concern is the diminishing central hospital grants from national, but in this budget we manage not only to compensate for this, but to increase the provision to these hospitals from the equitable share and own revenue by R179 million in 2003/04, growing to R371 million in 2005/06.

I am painfully aware of the fact that we must reward sincere restructuring efforts in the health sector by using this R873 million over the MTEF as a bridge between where health is now and the sustainable future it must embrace.

The vote increases overall by 10.9% this year, 5% next year, and 4% in year 3, receiving an additional R1,1 billion over the MTEF or 13,5% of all additional funding available.

I am also aware of the unhappiness that greeted my announcement last year that I was taking R120 million from health to education to prevent the dismissal of about 360 teachers. Today I am glad to announce that included in the health allocation are earmarked allocations for the replacement of medical equipment of R40 million in 2003/04, R42 million and R44 million in the two outer years, which should go a long way towards improving the efficiency of hospitals. Health has added to this R11, 742 million per year out of increased own revenue.

The Co-operation between the ANC and the NNP has found its most creative expression in the fight against HIV/Aids. Embracing the comprehensive approach - as opposed to fighting a multi-facetted disease from only a single trench - has allowed this Province to fund lifestyle interventions, social security transfers to People With Aids, anti-retroviral treatment, prevention of mother to child transmission, and the establishment of a general treatment platform rangingfrom counselling to training, to home based care.

The health conditional grant for HIV/Aids increases from R8,8 million in 2002/03 to R24,2 million in 2003/04. In addition to the conditional grant, a special earmarked allocation of R30,6 million is made available from provincial own funds to further strengthen the Aids programme. This brings the total allocated to Health for HIV/Aids to R54,8 million - the largest to date. Almost 25% of these funds will be channelled through non-governmental organisations.

The overall HIV/Aids allocation increases to R66,8 million and R69,4 million in 2004/05 and 2005/06 respectively.

The Education conditional grant for HIV/Aids increases from R9,5 million in 2003/04 to R10,2 million and R10,8 million in the outer two years. The Social Services community-based care conditional grant is R2,9 million, R3,1 million and R3,3 million in the three MTEF years.

The global increases to HIV/Aids provides for a significant multi departmental response on a scale that matches the growing severity of the epidemic in the Western Cape. We need to register our appreciation to the national government for the conditional grants to fight HIV/Aids.

I am convinced that while meeting all of these challenges, change creates discomfort and uncertainty. The Western Cape is taking the necessary bold steps and I am convinced that Health has the necessary leadership and commitment to make these changes happen.

The frontline against poverty

Social Services and Poverty Alleviation are conscious that they perform their responsibility in the frontline against poverty, but that they do so within a developmental approach so that the objectives of iKapa elihlumayo can be achieved.

The safety net they provide has become both extensive and intensive. From 322 000 beneficiaries in early 1998, costing R1,8 billion (when I held the portfolio) the number of beneficiaries would have grown to 503 000 by the end of this year and by March 2005 the expenditure would have doubled to R3,5 billion to service 642 000 beneficiaries.

The value of Grants and Pensions has also increased significantly in the last year. When I presented the 2002/03 budget the value of pensions and disability grants was R620. By April this year it will be R700. Both my parents are in the House, and they will benefit directly from this.

We have also received a Conditional Grant for the phasing in of the Child Support Grant over the next 3 years. Again, the value of the grant increases to R160, but I must stress that it is only to be introduced as follows:

• From April 2003 - 7 + 8 year olds (under 9)
• From April 2004 - 9 + 10 year olds (under 11)
• From April 2005 - 11+12+13 year olds (under 14)

On the whole the most important elements of this safety net includes social pensions and grants for which we budget, R3,2 billion for 2003/04; financial support to the value of R241 million to the welfare NGO sector (involving about 1 600 NGO's); and R32 million to be spent on poverty alleviation initiatives (including food security programmes) targeting the most vulnerable people and areas in the Province. We can note the achievement that for once poverty alleviation fundshave not been rolled over. Overall this vote increases by 25% from the comparative 2002 adjustments estimates and 15% and 9.5% over the two outer years of the MTEF. In money terms this totals R3,5 billion extra over the MTEF or 42,7% of all extra available resources. Specific awards of R73,6 million in 2003/04 and R72,9 million for each outer year has been made to deal with grant pressures.

The challenges for this sector are:

• To restructure its system to embrace the cost centre model with regards to its district offices/facilities which will increase responsiveness to community needs, improve accountability, and monitor whether government funds are used effectively and efficiently;
• To involve communities to ensure that only people who qualify for pensions and grants actually receive grants. (All possible fraud or questionable cases should be reported to the fraud line 0800 220250 for investigation);
• An assessment of the capacity, target groups, and degree of racial integration of welfare organisations funded by the Department, to allow, if necessary, a redirection of funding to areas of greater need in line with government's focus to serve the poorest of the poor; and
• To stay within the funding parameters set by this budget for social security or countenance the unpalatable crowding out of the rest of the Social Services function.

Housing

This department, by addressing the challenge of the housing backlog and homelessness, can provide both a safety net and contribute to the kick-starting of the construction industry. From what I have said previously, the needs are great, but so are the opportunities for integrated, coordinated work with local government.

Our Housing Department has performed well in spending the dramatically increased allocation of last year. We intend to maintain the momentum by increasing their budget to R519,5 million next year of which R423 million will be used as housing subsidies.

If we project our impact on housing over the MTEF, then we would see that our cumulative budget allocation would be R1,3 billion for subsidies which would translate into more than 60 000 housing opportunities over the next 3 years.

iKapa elihlumayo will stand or fall by our performance in the fields of Human Resource Development and Infrastructural Development. Broadly, therefore, our endeavours rest on theanchor role required from the Departments of Education and Transport and Public Works. Theyneed to be the major catalyst for economic growth, enabling us to close the skills gap, and toput in place strategic infrastructure which unlock the potential of our economy.

Education

Given the statistics I have supplied and the concern expressed, Madam Speaker, by the Premier about the state of our human resources, I would concur with the Premier that "Excellence in Education" is an important pillar in our Province.

In the long run systematic education holds the key to combating poverty and to ensuring sustainable development, but that can only be realised if all learners are exposed to educational standards which equip us for a globally competitive world. We have to provide our citizens with the knowledge and skills they need to meet the development challenges posed by an unforgiving and extremely competitive international knowledge economy of the 21st century.

The Learning Cape needs to evolve into the Human Resource Development Strategy underpinning our Growth and Development Strategy on which we will build the future economy of the Western Cape. We obviously cannot build, in the words of the Premier, a world-class province without building the capacity of our citizens, particularly our youth, to play a dynamic role in the province.

Our citizens have a constitutional right to basic education and to further education, which we must make progressively available and accessible. This will not only tax the innovative capabilities of teaching staff and management at Education, but also encourage them to re-look at their internal efficiencies and focus on delivery.

We are all accountable for ensuring the success of education in this province and the country as a whole. We have to achieve this success with limited resources: financial, human, and time. We sometimes forget that time is a precious resource, especially contact time with learners in the classroom. Teachers have a special responsibility for ensuring that classroom hours are used effectively.

The vote as a whole increases by 9.2% this year, 6.5% next year and 4.1% in year 3, receiving R1,1 billion extra over the previous MTEF numbers or 13.8% of all additional money available for expenditure. Included in this amount are specific provisions for learner support materials (LSM) of R66 million in 2003/04, R159 million and R143 million in the remainder of the MTEF.

We need a greater commitment to equity, to redress the imbalances of the past, to ensure that our whole society can contribute to economic growth and to enjoy the benefits of this growth.

Last year we resolved a crisis of about 360 teachers who faced retrenchment. We did so as a government conscious of the fact that if education was going to play the critical role of developing our Human Resource Capacity, and doing so within essentially the same envelope, then it needs stability and predictability.

Similarly our investment in learner support materials is meant to improve the learningenvironment through the supply of books, equipment, technology, laboratories etc - especiallyin previously disadvantaged schools.

To further assist in improving the skills and education levels in the Western Cape, which wouldinclude bringing into the equation the various SETA's operating in the province and othereducational initiatives and institutions, R32,5 million has been provided for under vote 3,Provincial Treasury. Education will have to play the leading role in the utilisation thereof.

Transport and Public Works

Transport and Public Works has been tasked to deliver on physical and transport infrastructurein a consistent and stimulatory manner and to drive and co-ordinate infrastructure associated economic endeavours to achieve maximum and sustainable economic empowerment results. Key objectives are the reinvigoration of public transport and community based public works that has as an ultimate goal, black economic empowerment.

By the same token this department will fulfil the anchor role in realising the ideals underpinningiKapa elihlumayo over the short to medium term. Education has this responsibility over the longterm. Minister Essop in her vote speech will expand more fully on this role and associatedresponsibilities, as well as how the private sector, other parties, the Unicity and othermunicipalities will be drawn into this endeavour. What I can say is that plans are far advanced inidentifying phase 1 of the new metropolitan transport corridor for implementation in the newbudget year. She will be making public the preliminary details of this around middle April. Thiswill be followed by a public consultation process, with the overall details of the proposedscheme to finalised at the intended Public Transport Summit on 15, 16 and 17 May of this year.

To assist them in achieving this role, the vote increases by 22.3%, 6.3% and 8.6% respectively,or R1,247 billion over the MTEF. Of the extra moneys they get 15.3%, although a substantialportion of this comes from accumulated capital or other cash financing and about R92 million in2003/04 from surrenders in the current financial year.

Both the Departments of Economic Development and Tourism, as well as Agriculture, have theresponsibility to ensure that iKapa elihlumayo is felt in the real economy of the Western Cape.Put differently, the industry sectors must respond positively to the stimulation provided by ourstrategy and experience growth, and, in turn, they must deliver on the equity outcomes desiredby our strategy viz employment, higher income levels, economic empowerment and SMMEdevelopment.

Economic Development and Tourism

Economic Development and Tourism receive R80,7 million, R61,6 million, and R64,7 millionover the 3 years of the MTEF. This year's allocation is higher because we budget R22 millionfor our final commitment to the Cape Town International Convention Centre. The ConventionCentre together with those sectors, I have already mentioned (film, clothing and textiles, oil andgas) are leading our thinking about what is possible when we apply the micro-economic reformstrategy.

This strategy identifies our growth sectors - traditional and knowledge-based - and examinesevery blockage that holds us back and every investment that can open that sector to growth. Itthen requires systematic, detailed work until the equity objectives are reached for Tourism andany other sector of the economy.